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STANDING COMMITTEE
THURSDAY, FEBRUARY 10, 2005, 4:OO P.M.
ROOM W015, WEST OFFICE BUILDING
STATE CAPITOL COMPLEX
Sen. Gene Davis
Sen. Thomas V. Hatch
Sen. Parley G. Hellewell
Sen. John W. Hickman
Sen. Sheldon L. Killpack Sen. Ed Mayne
Sen. Michael Waddoups
Members Excused: Sen. L. Alma Mansell
Staff Present: Mark Steinagel, Policy Analyst
Karen Allred, Committee Secretary
Public Speakers Present: Dale Zabriskie, Utah Manufactured Housing Association
Tom Bingham, President, Utah Manufacturers Association
Gordon Olsen, Coast Crane Company
Rich Thorn, President, CEO, Associated General Contractors
Pete Clark, Utah Manager, Ed Kraemer & Sons
Craig Jackson, Director, Division of Occupational and Professional Licensing
Randon Wilson, Attorney
Paul Allred, Deputy Commissioner, Department of Financial Institutions
Jim Werbeckes, Vice President, Government and Regulations, Employees Insurance Corporation
Gary Thorup, Attorney, Property & Casualty Company of America
Brian Allen, Liberty Mutual Insurance
Mike Sonntag, Lobbyist, American Insurance Association
Douglas Richins, Director, DAS Purchasing
Paul Rogers, Workers Compensation Fund
Larry Lunt, Chairman, Alcohol Beverage Control Board
Chris Purcell, State Farm Insurance
Steve Sullivan, Attorney
A list of visitors and a copy of handouts are filed with the committee minutes.
Committee Chair Scott K. Jenkins called the meeting to order at 4:10 p.m.
MOTION: Sen. Hellewell moved to adopt the minutes of February 8, 2005.
The motion passed unanimously with Sen. Hatch, Sen. Hickman and Sen. Waddoups absent for the vote.
1. S.B. 223 Oversight and Enforcement of Work Done on Mobile Homes (E. Mayne)
Sen. Mayne proposed the following amendments:
1. Page 1, Lines 13 through 16 :
13 . includes mobile homes
and manufactured homes
within the definition of
structures referred to in the Utah
14 Construction Trades Licensing Act, thereby giving the Division of Occupational and
15 Professional Licensing oversight of construction trades that construct, alter,
16 remodel, or repair mobile
or manufactured
homes.
2. Page 3, Lines 66 through 72 :
66 (10) "Construction trade" means any trade or occupation involving:
67 (a) (i) construction, alteration, remodeling, repairing, wrecking or demolition, addition
68 to, or improvement of any building, highway, road, railroad, dam, bridge, structure, excavation
69 or other project, development, or improvement to other than personal property; [
70 (ii)
{
for purposes of this Subsection (10)(a), a mobile home is considered a
structure and
}
71
{
not an item of personal property;
}
constructing, remodeling, or repairing a
manufactured home or mobile home as defined in Section 58-56-3;
or
72 (b) installation or repair of a residential or commercial natural gas appliance or
MOTION: Sen. Mayne moved to adopt the amendments.
The motion passed with Sen. Hatch, Sen. Hickman, Sen. Waddoups and Sen. Davis absent for the vote.
Dale Zabriskie, Utah Manufactured Housing Association, spoke in support of the bill.
MOTION: Sen. Hellewell moved to pass the bill out favorably as amended.
The motion passed unanimously with Sen. Hatch, Sen. Hickman and Sen. Waddoups absent for the vote.
2. S.B. 29 Licensing of Crane Operators (G. Davis)
Sen. Davis explained the bill.
Speaking in support of the bill were: Tom Bingham, Utah Manufacturers Association; Gordon Olsen, Coast Crane Company; Rich Thorn, President and CEO, Associated General Contractors; and Pete Clark, Utah Manager, Ed Kraemer & Sons.
Craig Jackson, Director, Division of Occupational and Professional Licensing answered questions from the committee.
MOTION: Sen. Mayne moved to pass the bill out favorably.
The motion passed unanimously with Sen. Hickman and Sen. Killpack absent for the vote.
3. S.B. 215 Financial Institutions as Limited Liability Companies (L. Hillyard)
MOTION: Sen. Hellewell moved to adopt 1st Sub. 215.
The motion passed unanimously with Sen. Hickman and Sen. Killpack absent for the vote.
The following amendments were distributed:
1. Page 1, Lines 20 through 21 :
20 Other Special Clauses:
21
{
None
}
This bill provides an immediate effective date.
2. Page 6, Lines 151 through 153 :
151 (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
152 commissioner shall make rules governing the form of a request for approval filed under this
153 section.
Section 2. Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect upon approval by the governor, or the day following the constitutional time limit of Utah Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto override.
MOTION: Sen. Hatch moved to adopt the amendments.
The motion passed unanimously with Sen. Hickman and Sen Killpack absent for the vote.
Sen. Hillyard explained the bill assisted by Randon Wilson, Attorney.
Paul Allred, Deputy Commissioner, Department of Financial Institutions spoke in support of the bill.
MOTION: Sen. Hatch moved to pass out 1st Sub. S.B. 215 out favorably as amended.
The motion passed unanimously with Sen. Hickman and Sen. Davis absent for the vote.
4. S.B. 180 Workers Compensation - Competitive Bid Requirements (M. Waddoups)
Sen. Waddoups proposed the following amendments:
1. Page 1, Lines 12 through 19 :
12 This bill:
.
addresses the makeup of the Workers' Compensation Fund's board of
directors;
13 . deletes the requirement that state entities pay the Workers' Compensation Fund for
14 workers' compensation coverage;
15 . requires that state entities seek competitive bids for workers' compensation
16 insurance every three years in accordance with the Utah Procurement Code;
and
17
{
. requires the Department of Insurance to determine the criteria and
process for
18 insurance companies submitting competitive bids; and }
19 . makes technical changes.
. Page 2, Lines 34 through 37 :
34 (3) One director
{
[
}
: (a)
{
]
}
shall be the executive director of the
Department of
35 Administrative Services or the executive director's designee[
{
.
}
;
36
{
[
}
(b) acts as the representative of the state as a policyholder of the
Workers'
37 Compensation Fund.
{
]
}
; and
(c) shall resign when required by Subsection (8).
. Page 2, Line 58 through Page 3, Line 60 :
58 (8)
(a)
Any director who represents a policyholder that fails to maintain workers'
59 compensation insurance through the Workers' Compensation Fund shall immediately resign
60 from the board
including the executive director of the Department of
Administrative Services or the executive director's designee resigning on the day on
which no department, commission, board, or other agency of the state is insured by
the Workers' Compensation Fund pursuant to Section 34-2-203.
(b) If no department, commission, board, or other agency of the state is insured by the Workers' Compensation Fund pursuant to Section 34A-2-203, the governor, with the consent of the Senate, shall appoint a member to replace the executive director of the Department of Administrative Services or the executive director's designee. The member appointed under this Subsection (8)(b) shall:
(i) be an owner, officer, or employee of a policyholder that has been insured by the Workers' Compensation Fund for at least one year before the appointment of the director representing the policyholder; and
(ii) shall have the experience outlined in Subsection (7)
.
. Page 3, Lines 73 through 75 :
73 (b) Notwithstanding the requirements of Subsection (11)(a), the governor shall, at the
74 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
75 directors are staggered so that approximately half of the
appointed members of
the
board
{
is
}
are
appointed every two years
, provided that no more than
two directors may be appointed in a single year
.
. Page 5, Lines 124 through 134 :
124 [
{
(a)
}
Beginning on the day on which any contract in effect on May
2, 2005,
125 between the state and the Workers' Compensation Fund for workers' compensation coverage
126 terminates, each department, commission, board, or other agency of the state shall [
127
128 workers' compensation insurance under this title by way of a competitive bid process.
129
{
(b)
}
(2)
The competitive bid process required by Subsection
(1)
{
(a)
}
shall:
130
{
(i)
}
(a)
occur once every three years; and
131
{
(ii)
}
(b) be conducted
in accordance with Title 63, Chapter 56, Utah
Procurement Code.
132
{
(2) Notwithstanding Subsection (1)(b), the Insurance Department shall
determine the
133 criteria and process for an insurance carrier to bid for the opportunity to provide workers'
134 compensation insurance to a department, commission, board, or other agency of the state. }
MOTION: Sen. Waddoups moved to adopt the amendments.
The motion passed unanimously with Sen. Hickman absent for the vote.
Jim Werbeckes, Vice President, Government and Regulations, Employees Insurance Corporation, spoke in support of the bill, but opposed to the amendment.
Speaking in support of the bill were: Gary Thorup, Attorney, Property & Casualty Company of America; Brian Allen, Liberty Mutual Insurance; Mike Sonntag, Lobbyist, American Insurance Association; Douglas Richins, Director, DAS Purchasing.
Paul Rogers, Workers Compensation Fund, spoke to the amendments.
MOTION : Sen. Killpack moved to pass the bill out favorably as amended.
The motion passed unanimously with Sen. Hickman absent for the vote.
5. S.B. 65 Alcoholic Beverage Control Amendments (P. Knudson)
Sen. Knudson explained the bill assisted by Larry Lunt, Chairman, Alcoholic
Beverage Control Commission.
MOTION: Sen. Davis moved to pass the bill out favorably.
The motion passed unanimously with Sen. Hickman absent for the vote.
6. S.B. 207 Motor Vehicle Insurance Coverage Amendments (D. Eastman)
Sen. Hatch presented the bill.
Chris Purcell, State Farm Insurance, and Steve Sullivan, Attorney, spoke in support of the bill.
MOTION: Sen. Waddoups moved to pass the bill out favorably.
The motion passed unanimously with Sen. Hickman absent for the vote.
MOTION: Sen. Davis moved to adjourn.
The motion passed unanimously with Sen. Hickman absent for the vote.
The meeting adjourned at 5:45 p.m.
Sen. Scott K. Jenkins, Chair